THE Federal Government has signed $11.117b contract agreement with the China Civil Engineering Construction Company (CCECC) for the construction of the Lagos-Calabar railway line.
According to the minister of Transportation, Rotimi Amaechi, the first segment of the rail line, which comprises Calabar, Uyo, Aba and Port-Harcourt will be ready within two years.
Signing the contract in Abuja, the minister explained that it signifies the Federal Government’s resolve to pursue aggressive diversification plan for the economy.
The minister explained that through negotiations, the Federal Government was able to negotiate the price of the contract downwards by $800 million, adding that although the contract was initially valued at $11.917billion, it would now to cost $11.117 billion.
According to the minister, other segments of the Lagos Calabar coastal rail line such as Otueke,Yenagoa, Ughelli, Warri, Sapele, Benin, Agbor, Asaba, Onitsha, Ijebu Ode, Lagos, would be ready also within another two years.
The minister said: “We are today signing contract for the awarding of the Lagos Calabar rail line at the cost of $11.117billion. Initially, that project was to be awarded by the Goodluck Jonathan administration at the cost of $11.917billion. We have been able to secure a price reduction of $800 million due to negotiations and the fall in price of some commodities in the world market.
“But it is basically the same contract but at different price. The first segment, Calabar and Port-Harcourt by my expectation will be ready in two years and they are to be linked with all the sea ports”.
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